The orbitofrontal cortex updates beliefs for state inference.

While the orbitofrontal cortex (OFC) is implicated in learning and inferring latent states, the precise computation performed by the OFC for state inference is unclear. Here, we show that the rat OFC updates beliefs about states, and this process is decipherable from OFC dynamics in rats performing state inference but not alternative strategies. We trained rats to perform a temporal wagering task with hidden reward states. Well-trained rats used state inference when deciding how long to wait for rewards, and OFC inactivations impaired belief updating about states. Electrophysiology and novel population analysis methods identified latent neural factors reflecting inferred states in rats performing inference, but not other strategies. Neural firing rates and latent population factors showed abrupt changes following trials that were informative of state transitions. These results identify a precise computation performed by OFC and reveal neural signatures of inference.