Perception results from our brains ability to make predictive models of sensory information. Recently, it has been proposed that psychotic traits may be linked to impaired predictive processes. Here, we examine the brain dynamics underlying prediction formation in a population of healthy individuals with a range of psychotic experiences. We designed a novel paradigm, which incorporated both stable and volatile sound sequences by manipulating their probability. We measured prediction error with electroencephalography and gauged prediction formation explicitly by behaviourally recording regularity learning errors. Critically, we show that top-down frontotemporal connectivity may be a neural mechanism by which impaired regularity learning influences psychotic experiences. These findings further our understanding of the neurobiological underpinnings of prediction formation and provide evidence for a continuum of psychosis in the healthy, non-clinical population.