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Red colors are known to actually raise body temperature. In tests it has been shown that red prompts the heart rate to speed up, which causes adrenalin to be released into the bloodstream, thus increasing body temperature.
This is why many people find a this color room somewhat overpowering, unless the red is balanced by a more restful interior design color.
You can use red if you want a room to have impact. It's often used in dining rooms, where you're normally busy eating and chatting with other family members or friends. Or use it in a cloakroom or hallway, somewhere you visit briefly.
It usually comes into its own when used as an accent color in flower arrangements, pictures, pillows and especially area rugs.
(Because it is stimulating, red is often used in restaurants. The theory is that it stimulates conversation, which stimulates eating and drinking, which results in people spending more than they intended!)