LONDON, June 22 (Reuters) - Euro zone bond yields rose slightly on Thursday as investors digested decisions from central banks and comments from policymakers.

Euro zone yields edged higher after the Swiss National Bank raised interest rates to 1.75%, from 1.5% on Thursday, and signalled it may do more.

Half an hour later, the Norwegian central bank raised rates by a bigger than expected 50 basis points (bps) to 3.75%.

Germany's 10-year bond yield the euro zone's benchmark, was 1 basis point (bp) higher at 2.437%.

The German 2-year bond yield, which is highly sensitive to changes in interest rate expectations, was up 2 bps at 3.202%.

Investor focus turns to Britain, where the outlook is uncertain. Traders who bet on the direction of rates think there's a roughly 50% chance the BoE raises borrowing costs by 50 bps later on Thursday, as opposed to a 25 bp hike.

Data on Wednesday showed British inflation failed to fall as expected in May, instead holding at 8.7%. The data sent yields on 2-year British bonds, or Gilts, to their highest since 2008.

"Gilts remain in focus today and could drive the broader market after yesterday's sell-off on the back of above consensus inflation figures," said Hauke Siemssen, rates strategist at Commerzbank, in a note to clients.

Italy's 10-year bond yield was up 1 bp at 4.066% on Thursday. It is seen as the benchmark for the more indebted countries in the euro zone.

Yields were largely unmoved by testimony from U.S. Federal Reserve Chair Jerome Powell in front of Congress on Wednesday, in which he said two more 25 bp rate hikes by the end of the year "is a pretty good guess" of what will happen.

The Fed has hiked rates by 500 bps since March 2022 to a range of 5% to 5.25%.

Euro zone yields, particularly on shorter-dated bonds, have been approaching levels last seen in March, before a banking crisis in the United States and Switzerland caused them to plunge.

Germany's 2-year yield hit 3.235% on Wednesday, its highest since March 9, after the British inflation data reminded global investors that the fight against price rises is far from over.

Traders expect the European Central Bank to raise rates to a peak of just under 4% by December, according to market pricing on Thursday, from the current 3.5% level.

The closely watched gap between Italian and German 10-year yields was at 163 bps. Last week it hit its tightest level since April 1, below 150 bps.

In a busy day for markets, investors will hear from ECB officials Fabio Panetta and Luis de Guindos, as well as more Congressional testimony from Powell and other Fed officials.

(Reporting by Harry Robertson Editing by Christina Fincher)