DUBAI- Oman's central bank said on Thursday it has raised the interest rate it offers on capital deposits -- deposits which banks and other financial firms are required to keep at the central bank -- by 0.5 percentage point to 1.5 percent.

The central bank cited recent rises in Omani market interest rates, which have been climbing in response to hikes in U.S. rates. The higher capital deposit rate is effective retroactively to Jan. 1 this year, the central bank said.

It last adjusted the rate in February 2015, cutting it by 0.5 percentage point.

(Reporting by Andrew Torchia Editing by Hugh Lawson) ((andrew.torchia@thomsonreuters.com; +9715 6681 7277; Reuters Messaging: andrew.torchia.thomsonreuters.com@reuters.net))