This paper illustrates an effect of sampling in an encoderless vector-controlled induction motor drive with a digital controller. The analysis focuses on the speed observer and the speed control loop which is executed at discrete instants. It is shown that the estimated speed can fluctuate between samples in the speed loop and cause a sustained resonance via feedback. The shaft inertia is not available to smooth the ripple of the estimated speed and the associated resonance could adversely affect the inverter and machine. An analytical model is proposed to evaluate the risk of such a condition in the design and on-site adjustment of control gains. The requirement for a smoothing filter in the speed loop is identified.